ETHICAL COMPLIANCE REPORT

PATEL ENGINEERING.

Sector:

Industrials

Industry:

Engineering & Construction

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Infrastructure Construction
compliant
REVENUE RATIO FILTER
1.1%
View Calculations
DEBT RATIO FILTER
21%
View Calculations
LIQUIDITY RATIO FILTER
3.8%
View Calculations

Revenue Ratio

The sum of revenue from questionable and non-compliant sources should not exceed 3% of the total revenue. This ensures that the company has tolerable reliance on unethical sources of revenue.

1.1%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{490320000.00}{46330160000.00} \times 100 = 1.10\%

FORMULA

\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%

Segment	Compliance	Value
Sale of Products	compliant	₹4,278.39
Other Operating Revenue	compliant	₹265.72
Interest income	non-compliant	₹47.64
Net Gain on Sale of Investments	questionable	₹1.39
Other Income	compliant	₹39.88

Debt Ratio

The interest bearing debt should not exceed 31% of the total assets. This is to ensure that the company is not paying a significant portion of its assets as interest.

21%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{18854920000.00}{89961250000.00} \times 100 = 21.00\%

FORMULA

\textbf{Debt Ratio:} \\[12pt] \dfrac{\text{Interest Bearing Debt}}{\text{Total Assets}} \times 100 \; \leq \; 30\%

Liquidity Ratio

The total liquid assets should not exceed 90% of the total assets. This is to ensure that trading this stock does not become similar to trading a currency.

3.8%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{3387540000.00}{89961250000.00} \times 100 = 3.80\%

FORMULA

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{\text{Total Liquid Assets}}{\text{Total Assets}} \times 100 \; \leq \; 90\%